Icelandic investment bank Kaupthing was given permission yesterday to purchase up to one-fifth of the shares in Storebrand, a Norwegian finance company, increasing its stock ownership from nine to 10.43 percent.
According to Markadurinn, a weekly business addition to Fréttabladid, companies need permission from Norwegian authorities to acquire more than ten percent of a local finance company.
Kaupthing requested permission to buy up to one-fourth of Storebrand, but Norwegian authorities only gave the Icelandic bank permission to buy up to one-fifth.
The Norwegian insurance company Gjensidige, which used to be the largest shareholder in Storebrand, has also been granted permission to acquire one-fifth of its shares and is expected to compete with Kaupthing over Storebrand.
Kaupthing’s current share in Storebrand, 10.43 percent, is estimated to be worth ISK 27 billion (USD 403 million, EUR 303 million). Storebrand is worth nearly ISK 260 billion (USD 3.9 billion, EUR 2.9 billion) in total.
After Kaupthing increased its ownerships of shares in Storebrand yesterday, its stock currency rose by 12 percent.